A BUNDLE of hand-written notes kept by a lawyer acting for Eddie Obeid and his family have been tendered in an inquiry as evidence that the family knew about confidential government plans to open up areas for mining exploration in July 2008.

The lawyer acting for the Obeid family, Colin Biggers & Paisley partner Chris Rumore, told the inquiry he had several meetings with two or three of the Obeid brothers - Moses, Gerard or Paul - accompanied their adviser Gerard Brook - where he was given details of the state governments plans.

Mr Rumore said that he was told that agreements to buy up neighbouring farms had to be in place before the Expressions of Interest opened.

The Minister had not yet announced the opening of the areas for coal exploration.

It was submitted that emails tendered in evidence also showed the Obeid brothers appeared to be in a hurry to buy the farms adjoining Cherrydale Park, already owned by their father Eddie Obeid.

The hand written notes carefully explain the instructions given by the Obeid brothers to Mr Rumore of how the profits would be divided and that the brothers were planning to profit from selling the farms to a coal miner.

Early in the planning, the Obeids planned to partner with the Chinese pharmaceutical and mining entrepreneur Alan Fang, who owns the Tianda Group.

This occurred around the same time that Mr Fang met with Mining Minister Ian Macdonald in China.

Mr Rumore's evidence is continuing this afternoon.

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Earlier today the ICAC heard Eddie Obeid did not want it to appear that he or his family was interested in allowing coal mining on his farm in the Bylong Valley, an inquiry has heard.

The man who sold his farm to Mr Obeid in September 2007, John Cherry, told a corruption inquiry that Mr Obeid had tried to distance himself from mining.

On the third day of a hearing in the Independent Commission Against Corruption in Sydney, Mr Cherry said after he sold Cherrydale Park to Mr Obeid for $3.65 million, the former Labor minister chose to run the property in a way which was not economically viable.

He said Mr Obeid chose to run old breeding cows destined to become hamburger patties on the fertile land which was better suited to running younger cattle set for the top end of the market for sale to Japan.

Mr Cherry said Mr Obeid told him he wished to run goats on the land, cattle and perhaps dairy cows, but the land was not suited for goats.

"Cherrydale is upmarket", Mr Cherry said. It was better suited for top end beef fattening, he said.

The Obeids have since agreed to sell their farm, Cherrydale Park to Cascade Coal for $17 million, but the sale has not completed yet.

They are also set to make up to $100 million from the sale of shares in mining companies they allegedly purchased secretly.

The inquiry continues.

In the inquiry heard yesterday, Mr Obeid once said he could help then Sydney lord mayor Frank Sartor get a $1 million nest egg on which to retire - but later urged two premiers to replace Mr Sartor as state planning minister.

And the man he wanted in the planning portfolio was Ian Macdonald, now accused of conferring political favours which had the potential to earn the Obeid family $100 million.

The Independent Commission Against Corruption is looking into what it described as possibly the largest-scale corruption in NSW by elected politicians in more than 200 years.

Mr Sartor yesterday described Mr Obeid and Mr Macdonald as "kindred spirits" and the 2009 Labor era as a "tawdry time ... that wasn't our finest era". He told the inquiry that in 2003 when he was Sydney lord mayor and being urged to run for Labor in Rockdale he mentioned to Mr Obeid he'd like to retire with $1 million in super - to which the former powerbroker said: "I can help you with that."

"I was shocked," Mr Sartor said, adding Mr Obeid later urged him to "be a team player" over a development approval for the Balmain Tigers.

Mr Sartor's evidence came as a former friend said Mr Obeid's son Moses had boasted he would make $100 million from coal mining exploration licences.

Nicole Fitzhenry told the inquiry that, during a conversation with her husband Peter, Moses Obeid said: "Ian's going to help Dad out."

ICAC has been told Mr Macdonald rigged the tender process and opened up the Bylong Valley for coal mining exploration, decisions that gave the Obeid family the potential to achieve $100 million profit.

The hearing was told Mr Macdonald had "a departure from policy" in not telling cabinet of the decision to exclude big miners like BHP and Xstrata from applying for the licences.

Ms Fitzhenry said Moses Obeid had urged the couple to buy a property in that area because "we could make a lot of money from the mining" - but they chose not to.

"We are going to make $100 million," she alleged Moses Obeid said.

Former premiers Morris Iemma and Nathan Rees - both helped to power and later torn down by Mr Obeid's far-Right faction the Terrigals - also gave evidence in which they revealed the inner workings of the government that ruled the state for 16 years.

After he sacked then minister Joe Tripodi and Mr Macdonald from their portfolios, Mr Rees - who was replaced in December 2009, by Kristina Keneally - told the hearing he knew that the pair, assisted by Mr Obeid, would "come at me every which way" .

"I had anticipated backlash, and there was serious backlash," Mr Rees told the hearing.

Mr Rees said he was told by Ms Keneally that there would be a cabinet spot for him in her government but that Eric Roozendaal "revised that" in a phone call the next day.

"I had formed a view that it was not a cabinet I wanted to be a part of," the now shadow police minister said.

Mr Rees said he decided to sack Mr Macdonald because he grew "concerned" about him "to the extent that he no longer enjoyed my confidence".

Mr Rees has told ICAC he knew removing Mr Macdonald would "be a risk" but "I didn't want to take chances any longer".

Ms Keneally reinstated Mr Macdonald, but not Mr Tripodi, to cabinet.

Mr Iemma, ousted as premier in September 2008, said he was told by Mr Tripodi on the day of his unseating "to retire to family life" during an "aggressive" meeting in his office about his proposed cabinet reshuffle in the wake of John Watkins' resignation.

He said Mr Macdonald had been talked up to him as a better "more active and productive" choice for the planning portfolio by Mr Obeid, who urged him to install Mr Macdonald in Mr Sartor's place.

"Mr Obeid said Mr Macdonald was someone who was worthy of taking on a responsibility within the government," Mr Iemma said.

Mr Iemma said he was informed that members of the Right faction, who opposed the ticket he had drawn up, were "spread like Brown's cows (through parliament) - they were all over the place".

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